Michael Hilton, the leader of American Police Force, the paramilitary organization that recently terminated a deal with local authorities in Hardin Montana to take over a detention camp in the town, has failed to co-operate with the Montana Attorney General’s demand that the company turn over financial record pertaining to the deal, opening up the possibility that Hilton could be arrested for contempt.

Hilton, a career criminal who is still wanted by authorities in Wyoming for his part in multiple cases of fraud, was given until yesterday to provide the documents but has failed to meet the deadline, instead sending a one page fax to the Attorney General’s office saying he was abandoning the deal to take over the Hardin facility.

However, as we reported on Saturday, despite the termination of the deal, the AG’s office indicated that it still needed to see the documents and if it didn’t receive them, APF could be held in contempt and Hilton could be arrested.

“Assistant Attorney General James Molloy had issued a demand on Oct. 1 for American Police Force to turn over its tax records; lists of customers; and names of company employees, owners and officers and other information,” reports the Associated Press.

The documents were demanded under a Montana law that bars unfair or deceptive business practices.

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“This is the response,” (Becky) Shay said of the company’s one-page reply. “It outlines that APF (American Police Force) was only in contract negotiations, did not do business in Hardin and has pulled out of contract negotiations.”

However, APF went further than merely negotiating with local officials. As was widely documented, APF SUV’s with decals that read “City of Hardin Police Department” were driven around town before an uproar prompted their removal. Before the story garnered intense media scrutiny, it appeared as if APF was preparing to act as law enforcement for the town, which would have been completely illegal and unconstitutional.

As the NY Times reports today, when Hilton rolled into town with his Serbian accent, his mock police uniform and his shadowy paramilitary outfit, he promised to make Hardin “the safest place in the United States to live, and in six months the best place to live.”

APF’s reluctance to hand over the documents likely centers around its refusal to identify the parent company that owns the organization.

The Attorney General’s only response to APF’s refusal to turn over the documents was to state that they were reviewing whether they could discuss the issue publicly, implying that further action is likely to be taken against Hilton and APF.